Monterey council directs mailed ballot for proposed stormwater utility fee after protest hearing

The Monterey City Council voted unanimously May 5 to proceed with a mailed-ballot election on a proposed stormwater utility fee after staff tabulated written protests and recommended the next step under Proposition 218.

The action follows a public protest hearing required by Proposition 218. Staff said notices were mailed to affected parcels on 03/20/2026 and that one emailed objection had been received. Rebecca Baggett, the city’s environmental regulations analyst, told the council that Proposition 218 requires notice, a public hearing and a protest process before a property-related fee can be imposed. "A protest hearing is a procedural requirement under Prop 218 before the city may impose a property-related fee to fund the operations and maintenance of the storm system," Baggett said during her presentation.

Why a mailed ballot: Staff and council described the mailed-ballot step as the next required stage if a majority protest does not exist. Baggett said the proposed fee would cover roughly two-thirds of operations and maintenance costs; the city would continue to fund the remaining one-third from the general fund. The proposed median monthly charge for a single-family home is $4.81; staff said the older fee, last updated in 2002, had been $5.44.

Public commenters raised several concerns across the hearing. Property owners and managers questioned the equity of the parcel-based charge, said many tenants or owners had not received mailed materials, and warned about the cumulative burden of new fees amid a reported city deficit. "My reason for a no vote on the storm drain fees is a homeowner has to pay well over $57 a month," said Prem Vanessa, a resident, citing examples of higher charges for some property types. Others asked for more transparency about how collected funds will be allocated and whether the mailing process was complete; staff said they used county assessor data for mailing and that the city maintains a database of mailed notices and ballots.

City staff also reviewed background and timing. The city manager and budget staff said the stormwater utility fund balance has been nearly depleted and that the fee previously was paid by ratepayers but has been temporarily absorbed by the general fund. City staff said a draft rate study is available on the city's website and would be finalized following the ballot process.

With staff reporting that 108 protests were received — fewer than a majority of affected parcels — the council adopted a resolution declaring that a majority protest does not exist and directing the mailed-ballot proceeding. Ballots will be mailed to property owners, and the mailed-ballot voting period will end July 6 at noon; the proposed fee would require approval by a majority of returned ballots to be adopted.

The council’s action does not itself set a final fee; it directs the next procedural step under Prop 218. If the mailed ballot receives a majority of returned ballots in favor, staff will return with implementing details and any necessary rate resolution.